Are you tired of being behind on monthly bills, receiving late notices in the mail, and generally always feeling like you’re one paycheck away from monetary disaster? Since the widespread lockdowns of the last two years ended, many working adults are still in a financial bind and need help getting back on their feet. For some, it’s just a matter of catching up on a few missed payments, but for others, the sting is much worse. If you’re struggling to regain financial solvency or establish it for the first time in your adult life, note that there are dozens of techniques that can bring relief without having to turn your life upside down. While all the following suggestions might not apply to you, it’s best to review each one and consider whether one or more can make a difference for your general solvency.
From using the ABW principle to finding scholarship money for college, there’s likely a hack or tactic that can set your money situation straight. Consider checking all three of your bureau credit scores, making or revising your monthly budget, amassing an emergency fund, being smart about car buying, and aiming for homeownership if you are currently a renter. Here’s how to get started on the road to financial solvency.
Use the ABW Principle
You’ve probably heard of the ABW principle in one of its many versions. The letters stand for always be working and are a simple but powerful bit of advice. If you are aiming for fiscal solvency, ABW will keep you above water even when you get laid off from your main job. People who follow the ABW method strive to fill in the gaps in employment by taking on minimum wage work when necessary. Because they never stop working, they’re always receiving paychecks that can usually cover basic bills and living expenses.
Be Smart About Paying for College
If you’re planning to earn a college degree, make a financially sound decision and explore all scholarship possibilities before plunking your own money down on tuition, room, board, books, etc. It makes good sense to search for scholarships for college online based on your eligibility and apply for all the ones you have a decent shot at receiving. The great thing about this approach is that no matter how much money you’re awarded, you never have to pay it back. Scholarships are a win-win situation and one method of education financing you can’t afford to ignore. The application process is quick, and you can find out how much money is available in just a few clicks.
Monitor Your Credit Scores
You want to build credit the right way and you should check your scores with the three major bureaus at least once per year. Read all the fine print in each report and look for errors. Mistakes are more common than you might think. Additionally, see where you can improve and focus on trouble spots like carrying too much debt on credit cards or making occasional late payments on cars or mortgages.
Budgets and Cars
Work hard to stick to a reasonable monthly budget. Consider hiring a credit counselor to help you make one that suits your income and spending needs. Avoid buying new cars. It’s much less costly to buy vehicles that are two or three years old, based on depreciation and general operating condition.
Houses and Emergency Funds
If you are a renter, make a detailed plan for buying a home one day. Ownership is the single best thing you can do for your long-term fiscal solvency. Plus, create an emergency fund equal to about three months of income. An e-fund can keep you afloat after a layoff or other financial setback.